Announcement of new lottery licence operator postponed - again
Announcement of new lottery licence operator postponed - again
Blog Article
Parks Tau, the trade and industry minister, has postponed naming a winning bidder to operate South Africa’s lottery in the event the tenure of current operator, Ithuba, finishes in Could up coming year.
Ithuba’s licence was owing to possess expired in May perhaps 2023 but was extended for 2 a long time by Tau’s predecessor Ebrahim Patel following a ask for with the then freshly-appointed board from the Nationwide Lotteries Fee (NLC).
The Board, which was coping with the corruption that had overcome the NLC, also recommended Patel of representations by Ithuba that it were seriously afflicted via the Covid pandemic. This integrated a ban within the sale of lottery tickets at the height in the pandemic.
With regard to the extension, Ithuba had to generate contributions on the NLC for distribution to very good triggers at a greater rate than provided for inside their initial licence.
New licence operators are specified six months to set up infrastructure, which include ticket machines countrywide, to choose above from the earlier operator ahead of the incumbent’s licence ends. This most recent postponement ensures that there won't be sufficient time for any clean changeover and It is actually not likely that Tau will increase Ithuba’s licence again.
The process of appointing a fresh licence operator has also been affected by allegations of conflict of curiosity and also other challenges.
GroundUp has discovered that the NLC has contingency programs in place to carry on funding good causes for up to a yr When the lottery as well as the sale of lottery tickets are suspended.
The contingency also covers funding in the occasion of litigation by losing bidders when a new operator is last but not least announced, which could also derail The graceful managing in the lottery.
In the event that ticket revenue are stopped, the NLC will use its reserves of R3.9-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency plan advised GroundUp.
In his weekend statement saying the postponement, Tau claimed: “Unfortunately, I'm not ready to create a last choice at this stage. Any this kind of choice presently would in all fantastic conscience signify that I haven't applied my intellect with owing thought of all of the relevant components.”
“I have recognized issues that call for additional analysis. It would be inappropriate to disclose these issues now and their disclosure could incredibly effectively prejudice the proper adjudication with the awarding from the licence.”
Tau claimed he was awaiting guidance on The simplest way to ensure the continuation from the lottery inside the interim along with the “progress of a programme to finalise this process”.
This, he said, must be performed immediately after consultation Together with the National Treasury.”
Tau also hinted in the political make-up with the consortiums bidding for your licence as A further attainable reason for the postponement.
He explained: “I need to also be sure that the proprietors and supervisors of your productive applicants are, given that the Act states, ‘fit and appropriate individuals’. Moreover, I have to be certain that no political occasion or political office-bearer has any immediate economical fascination while in the applicant or simply a shareholder of your applicant.”
Company Day reported Beforehand that a lot of of the companies shortlisted for the tender are politically uncovered.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for that ANC KwaZulu-Natal chair position in 2022 in advance of dropping out right after he did not garner plenty of support, the paper noted.
One more politically related bidder is HCI, which is bulk-owned with the South African Apparel and Textile Employees’ Union, an affiliate of Cosatu, that's in alliance Along with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 campaign for the ANC presidency.
A further shortlisted bidder, As outlined by Organization Working day, is Thebe Financial investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Have faith in. The have confidence in has donated R60-million into the ANC given that 2021, In keeping with declarations made for the electoral commission.
Ithuba, the holder on the licence, is usually during the running, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Games, Based on Company Day.
Vivien Natasen consulted for Giya Game titles on its bid. GroundUp described in 2022 that Natasen, by way ofตรวจ ล้อ ต เต อ รี่ his company Neo Answers, contributed R2-million in direction of the posh mansion on the then-NLC chair Aflred Nevhutanda — even though his corporation Neo Remedies had a contract with the NLC. Natasen explained to GroundUp at that time that Neo Options was “appointed through the NLC’s offer chain processes, as and when products and services are essential”.